If you have accumulated more debt than you can reasonably pay off and have little to no disposable income, you may be eligible for chapter 7 bankruptcy. Also known as liquidation bankruptcy, chapter 7 allows debtors to pay back creditors using the sale of nonexempt assets and then discharges any applicable debts that remain. Here, a bankruptcy law attorney from Georgia’s Brian R. Cahn & Associates, LLC answers some of the most frequently asked questions on the proceedings.

Chapter 7 Bankruptcy FAQ

How Much Does It Cost to Declare Chapter 7?

As of September 2018, the total filing fees for chapter 7 bankruptcy amount to $335. If you are unable to cover this cost all at once, paying it in installments is an option as long as you submit the final payment within 120 days of filing. If you hire an attorney to facilitate the proceedings, expect to pay legal fees as well.

How Long Does It Take to Discharge Debt Under Chapter 7?

For most debtors, chapter 7 proceedings take three to four months to resolve. If you have a considerable number of nonexempt assets for the bankruptcy trustee to liquidate, though, it may take significantly longer, depending on the circumstances. 

How Do I Qualify for Chapter 7?

You must pass a means test to declare chapter 7 unless your income is below the Georgia median, in which case you automatically qualify. If you are the only member of the household, for example, you are exempt from the means test if you make less than $40,631 annually. Someone in a four-person household, on the other hand, is eligible for chapter 7 if their average annual income is less than $68,085. 

What Kinds of Debt Can I Discharge in Chapter 7?

Declaring chapter 7 will allow you to discharge all kinds of debt, including medical bills, credit card debt, collection agency accounts, past due utility bills, business debts, and lease obligations. In certain cases, it may also be possible to discharge student loans, unpaid taxes, and civil court judgments. 

If you want to declare chapter 7 bankruptcy in Georgia, turn to Brian R. Cahn & Associates, LLC. Located in Cartersville, Calhoun, Dalton, Dallas, and Woodstock, this debt relief firm helps clients throughout Northwest Georgia restore their financial security. Led by Brian R. Cahn, who has 25 years of experience, their seasoned legal team takes a personalized approach to every case. After evaluating your situation, they will explain the various options that apply and then help you determine the best way to proceed. Visit their website to find the location nearest you, or call (770) 382-8900 to schedule a consultation.